My increase on my egg card is to go up by six per cent.

toomanyshoes · 27 September 2006 at 9:59AM

After reading this thread and the interest rate reduction one, I called Egg about my increase from 15.9 to 16.9.

I was told that I had had my card for over 6 years and the increase would be due to many factors including BOE rate increases and how I have managed my account.

I was offered a loan at 8.9% but no reduction.

I have today received my PIN for my M&S &More card today so hopefully the card will follow tomorrow and I can transfer the balance that is left and close this once great Egg card.

M_Thomson · 27 September 2006 at 6:53PM

nigel_man wrote:

I'm in the same boat but I've decided to sue Egg for substantial breach of contract. I took out my Egg card in 2004, and part of the TOC's that I signed (clause 4.4) I think was that Egg agreed to always display the APR on their website and on my statement. The fact that they've now tried to personalise my APR means that the 15.9% displayed on the website no longer matches the 21.9% on my statement. Since 2004 they have increased the rate 78%, and I've decided its all tantamount to a serious breach of contract, misrepresentation, misselling and the rest of it. The product they are forcing on me now is a totally different product to that sold in 2004

I'm no lawyer, but I can tell you you will fall flat on your face by doing this.

ex-egghead · 27 September 2006 at 7:41PM

Totally agree with the above. As it happens my Egg Cards have only gone up 1% or so for each card. Anybody thinking 'I will move my money elsewhere' - my advice - go for it...after the 'honeymoon' period of 0% you will be back at square one. And to 'I'm going to sue egg' - good luck...you will need it!

This is the biggest overhaul of rates I can remember Egg doing. They've never personalised standard rates before, at least not for people who are not in financial hardship. I can promise that they will have done this right and broken no conditions in the agreement. Occasionally they step out of line, but only as far as adverts go (non P.C. adverts).

Last time I checked my credit rating, about two months ago, it was apparently higher than 80% of the population according to Experian, so it's not a case of targeting any individuals, its everyone...fair play to those that got a reduction!

When the next financial reports come out, take a look at Egg's. I would suggest the rate increases are to make up for last years closure of Egg France which cost around £150 million to close. Also, Prudential have increased there stronghold on the company, which subsequently led to the departure of then CEO Paul Gratton, who wanted to take the company forward by getting rid of Pru. There's alot of politics here but basically I think he left because he didn't agree with it but was forced to and therefore left.

nigel_man · 29 September 2006 at 8:58PM

I disagree with those of you that say Egg have not broken the TOC's of the card. You are effectively saying that they have the right to charge whatever they want and change the TOC's to whatever they think fit. I intend to challenge them for breach of contract.....they won't come to court on this, because if I won, it would open the flood gates. Some of you might want to read the comments of the then Egg Chief executive Mark Nancrow in this Moneyextra article, i'll be using it in court!

"Egg believes that we are being hoodwinked by advertising deals only offered to a handful of applicants. we regard the advertising of risk-based pricing as a direct attack on the spirit of transparency and price comparison. Why shouldn't we know up front how much we are going to pay?"

http://money.uk.msn.com/Banking/Cards/Special_Features/Take_The_Credit/article.aspx?cp-documentid=143396

M_Thomson · 1 October 2006 at 9:19PM

nigel_man wrote:

I disagree with those of you that say Egg have not broken the TOC's of the card. You are effectively saying that they have the right to charge whatever they want and change the TOC's to whatever they think fit. I intend to challenge them for breach of contract.....they won't come to court on this, because if I won, it would open the flood gates. Some of you might want to read the comments of the then Egg Chief executive Mark Nancrow in this Moneyextra article, i'll be using it in court!

"Egg believes that we are being hoodwinked by advertising deals only offered to a handful of applicants. we regard the advertising of risk-based pricing as a direct attack on the spirit of transparency and price comparison. Why shouldn't we know up front how much we are going to pay?"

http://money.uk.msn.com/Banking/Cards/Special_Features/Take_The_Credit/article.aspx?cp-documentid=143396

Again, Good luck with finding a lawyer to take this on. You won't find one. Every credit card has it written into the terms and conditions that it can change the rate at any time it wants as long as it gives you notice. As another poster pointed out, you have a short period to pay it off at the old terms. With regards to the quote, things can change. I seem to recall that this quote was made a few years ago. Market conditions can change.

D_Brundle · 2 October 2006 at 12:35AM

ex-egghead wrote:

When the next financial reports come out, take a look at Egg's. I would suggest the rate increases are to make up for last years closure of Egg France which cost around £150 million to close.

Mmmm, so basically the management screwed up but never mind we can get the money from the suckers who stick with us.

Adios. Game over, goodbye.

ddavis · 2 October 2006 at 8:52AM

me4bargains wrote:

I will do so thanks.
I wonder how many other credit companies will do this to reap in extra profits.

Unfortunately i am in the same boat - MBNA made my credit card 1.9 for 9 months to keep my custom. I got a letter last week saying it had been reverted back to its original rate - 24.9%!!! My rate was 12.9% before... We argued so they put it back. 3 days later my 'replacement' card (other one had 3 months left on it) turns up and its platinum at, you guessed it, 24.9.

My credit also isn't brilliant and i have about 5500 to sort out. Fortunately M&S accepted me and sent me my paperwork on saturday and virgin agreed to a loan of 6k (flexible with no penalties / redemption fees) to sort it. So i'll max out M&S and pay the rest with virgin.

Good luck, hope it works out for you too

mrslawrence2003 · 2 October 2006 at 11:28AM

M_Thomson wrote:

Again, Good luck with finding a lawyer to take this on. You won't find one. Every credit card has it written into the terms and conditions that it can change the rate at any time it wants as long as it gives you notice. As another poster pointed out, you have a short period to pay it off at the old terms. With regards to the quote, things can change. I seem to recall that this quote was made a few years ago. Market conditions can change.

i think perhaps you might be surprised - there will always be someone out there willing to take it on. life isn't black and white and neither is this.....